Dow Jones futures will open Monday evening, along with S&P 500 futures and Nasdaq futures, after the long Christmas weekend. Tesla Shanghai halts production while its Chinese rival No (NIO) introduced new models.
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The stock market rally had another rough week, but bounced off Thursday’s lows. Major indices were mixed last week, but many leading stocks came under further pressure. The market rally looks shaky but it’s not over yet.
It’s not a good time to buy stocks, especially growth names. But investors should always look for potential growth leaders for the next sustainable market rally. Shift4Payments (FOUR), Centigrade (FULL), imp (PI), Enphase Energy (ENPH) and Box (BOX) are doing relatively well in the current weak market. Shares of FOUR and Box consolidated near recent highs, while shares of Impinj, Celsius and ENPH are trading on 50-day or 10-week lines. None are actionable at the moment and all could collapse if the market continues to weaken. But keep an eye on them.
ENPH stock open IBD Leaderboard, with PI stake on Leaderboard watchlist. Shares of Enphase, Shift4Payments, Box and CELH rise IBD 50. ENPH stock also IBD Big Cap 20. Shift4Payments was Friday IBD Stock of the Day.
But growth megacaps, especially Apple (AAPL), Nvidia (NVDA) and tesla (TSLA).
Nio Day 2022
Finally, Tesla China rival No (NIO) holds Nio Day 2022 on Saturday. On the high end it introduced the EC7 coupe SUV, which is likely a Tesla Model Y competitor. EC7 deliveries will begin in May 2023. Nio also introduced a refreshed ES8 SUV, which, like its all-new models, is now on the NT 2.0 platform. Deliveries start in June.
Nio also announced a new generation of battery replacement stations and charging options.
Nio production is increasing with strong demand for the new ET5 sedan and ES7 crossover SUV. But the relaxation of Covid rules could be triggering a huge wave of infections, and Nio and other Chinese electric vehicle manufacturers could face remanufacturing or supply chain hiccups. EV giant HOUSING (BYDDF) said this week that Covid cases among workers reduced production by 2,000-3,000 vehicles per day.
Nio stock fell 5.4% last week, returning below the 50-day line. Shares are well below the 200-day line.
Tesla Shanghai Production Suspended
Tesla Shanghai stopped production on December 1. On January 24, the workers will return. September 1, 2023. In recent weeks, the end-of-year production halt has been widely reported. Shanghai had already slowed production earlier in the month as inventories surged despite price cuts at the end of October and significant year-end incentives. Some employees of Tesla and suppliers were also infected with Covid.
Tesla, which previously denied it would suspend production, said the shutdown was for annual scheduled maintenance.
Last week, Tesla stock fell 18% to 123.15 after falling 16.1% the previous week. These are the worst weekly losses since the March 2020 Covid crash. TSLA stock is at a 27-month low, down 70% from its November 2021 peak.
Earlier on Tuesday, weekly Chinese EV records will show whether the final stimulus drives a late Tesla boost. It also asked if BYD production issues are affecting deliveries, and also whether Nio’s Li Car (IF) and XPeng (XPEV) closes 2022.
Dow Jones Futures Today
With Christmas falling on a Sunday, US stock and bond markets and most stock markets around the world will be closed on Monday.
Dow Jones futures open at 6pm ET on Monday, along with S&P 500 futures and Nasdaq 100 futures.
Remember, overnight action Dow futures and elsewhere it doesn’t necessarily turn into real trade on the next regular trade Exchange session, meeting, session.
Join IBD experts as they analyze stock rally tradable stocks on IBD Live
Stock Rally
The stock market rally fell solidly throughout the week, but ended the week’s worst levels.
The Dow Jones Industrial Average rose 0.9% last week. stock market trading. The S&P 500 index fell 0.2 percent. The Nasdaq composite fell 1.9%. Minor Russell finished just above the 2000 breakeven point.
Apple stock fell 2% last week to 131.86. It dropped to 129.64 on Friday morning, testing the June market low of 129.04.
Nvidia stock fell 8.2% to 152.06 after falling back below the 200-day line the previous week, amid a large chip sale. NVDA stock found support at the 50-day mark on Friday.
The 10-year Treasury yield rose 27 basis points to 3.75%. The inverse relationship between Treasury yields and stock prices has diminished in recent weeks.
US crude futures rose 6.9% during the week to $79.56 a barrel and briefly hit $80 a barrel on Friday.
Tesla Buckles Up For A Very Interesting 2023
ETFs
Between best ETFsInnovative IBD 50 ETF (fifty) fell 0.3% last week, while the Innovator IBD Breakout Opportunities ETF (STRUGGLE) rose 0.7%. iShares Extended Technology-Software Industry ETF (IGV) fell 1.8%. VanEck Vectors Semiconductor ETF (SMH), NVDA stock and the large holding of SMH fell 4.7%.
SPDR S&P Metals & Mining ETF (XME) rose 1.6% last week. Global X US Infrastructure Development ETF (FLOOR) increased by 0.75%. US Global Jets ETF (JETS) fell by 1.3%. SPDR S&P Homebuilders ETF (XHB) fell 1.25%. Energy Select SPDR ETF (XLE) jumped 3.2% and the Financial Select SPDR ETF (XLF) rose 0.8%. Health Sector Selected SPDR Fund (XLV) rose 0.4%.
Reflecting more speculative story stocks, the ARK Innovation ETF (ARKK) fell 6.9%, hitting a new five-year low on Thursday. ARK Genomic ETF (ARKG) had slipped 5.6% last week. Tesla stock remains the most important asset among Ark Invest’s ETFs.
Top Five China Stocks to Watch Now
Growth Stocks to Watch
Shift4Payments stock rose 4.1% last week to 54.06. The stock of FOUR has been in wild swings, but has neared seven-month highs in the past few weeks. This relative power line It’s at an eight-month high, reflecting Shift4’s superior performance. S&P 500 index. Still, there is no clear buying point for FOUR stock at the moment.
Shift4’s earnings and sales growth accelerated in the last quarter as the company significantly expanded its target markets.
CELH stock fell 1.85% last week to 106.79, consolidating just below the 21-day line and approaching the 10-week line. Celsius stock briefly peaked at 118.29 cup base buy points earlier this month before withdrawing. However, this allowed the 10-week line to catch up, while the RS line remained close to the highs. A strong rebound from the 10-week line and above the 21-day line also breaks a short downtrend, providing an early entry for CELH stock.
Celsius’ sales growth is booming and should see strong gains in 2023, but the energy drink maker has a caffeinated value.
Impinj stock was up 4 cents to 111.87 Friday, down 2.9%, and fell to 50-day and 10-week lines for the first time since the strong earnings spread burst on Oct. 27. PI stock retreated modestly from record highs for four weeks in a row, but the RS streak barely dropped. An upside bounce from the 50-day line could offer an early rise. point of purchase.
Impinj earnings rose in 2022 and strong gains were seen next year.
Enphase stock fell 3.1% last week to 293.95 below the 50-day line. A 316.97 point of purchase mug with handle point of purchase is no longer valid. The ever-volatile ENPH stock may be a few weeks away from a new consolidation. An upside move from the 50-day line – perhaps reversing the old buy point – could offer an aggressive entry.
Enphase earnings and revenue growth are growing rapidly, with solid growth seen in 2023 and beyond, and solar incentives in the years to come.
Box stock has been trading tightly over the past few weeks, falling 0.7% to 31.01. The cloud-based data storage firm is on the edge of a purchasing zone out of 29.57 mug purchasing points. MarketSmith analysis, following and December. 12 cuts. The final pause can be seen as a handle to an eight-month consolidation. This buy point is 31.10, but investors can look for an early entry. Ideally, the 21-day line catches up with it, and the 50-day line narrows the gap to the Box stock.
Box earnings growth has accelerated over the past two quarters.
Market Rally Analysis
The stock market rally remains under heavy pressure. Major indexes were mixed throughout the week and did not bounce back after the big, ugly outside week of the previous week.
The Dow Jones rose moderately throughout the week after testing its 50-day line multiple times.
The S&P 500 fell modestly, but that masked some major swings throughout the week. The benchmark index retraced its 50-day moving average on Wednesday. On Thursday, the S&P 500 and other major indices fell to their worst levels in weeks, but also closed their lows.
On Friday, the S&P 500 rose slightly but remained below the 50-day line. Invesco S&P 500 Equal Weight ETF (RSP), with less weight to tech giants like Apple, met on Friday to rewind 50 days.
Nasdaq was the biggest delay with Tesla stock and Nvidia among the significant delays. However, after poor results and memory chip manufacturers’ guidance, there was broad weakness for growth stocks, especially among chip names. Micron Technology (HE IS).
The S&P 500 needs to regain the 50-day line, but this would only be a first step.
It is unclear whether the market will recover, roll to bearish lows, or move sideways in a choppy fashion for an extended period of time. Second, it may be more likely until there is some clarity on when and where the Fed will halt rate hikes and whether the economy will enter a definitive recession.
While growth stocks like Enphase and Celsius are worth watching, many medical stocks and other defensive growth plays remain. Metal and mining, industry, housing and some energy games are doing relatively well.
Time the Market with IBD’s ETF Market Strategy
what to do now
The stock market rose and fell throughout the week, with the technical picture unchanged. Major indices other than Dow Jones are below key moving averages. Retaining the leading stocks has been difficult at best.
Traders should have minimal risk and be careful about adding new positions. Don’t be alarmed by a strong opening or even a bullish session or two.
Keep your watch lists fresh. Many stocks from various industries are being or will be established. Some names show strong relative strength but no clear point of purchase. No problem right now.
In the meantime, take some time to review your trades for the past year, including big winners and losers, and trades you didn’t make but wish I could. Did you follow your rules and were your rules sound?
To read big picture Staying in sync with market direction and leading stocks and industries every day.
Please follow Ed Carson on Twitter: @IBD_ECarson for stock market updates and more.
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